Spanish financial transaction tax8/17/2023 The rule also applied to the following services irrespective of whether the recipient was a taxable person for VAT or not (B2B and B2C) Until 31 December 2022, the services covered by this specific place of supply rule were those listed in Article 59 of the VAT Directive when their recipient is a taxable person for VAT (B2B). The Spanish VAT use and enjoyment rule in force until 31 December 2022 established that specific services are considered to be supplied within the Spanish VAT territory and, consequently, subject to Spanish VAT when, following the place of supply rules, these services are deemed to be located outside the EU territory, the Canary Islands, Ceuta or Melilla, if their effective use or exploitation is carried out within the Spanish territory. The Spanish VAT use and enjoyment rule until 31 December 2022 In this article, which may be seen as a continuation of the article published in this blog on 22 June 2022, the author explains the Spanish use and enjoyment rule’s changes. With effect from 1 January 2023, the Spanish government has listened to a long-standing demand from Spanish companies and has finally decided to significantly restrict the application of this controversial rule. In recent times, the Spanish tax authorities made an excessively broad interpretation of it that, in many cases, made it difficult to determine with certainty when to apply the rule and in what terms. The interpretation and practical application that the Spanish tax authorities have made of this rule have changed over the years. This special provision is known as the ‘use and enjoyment’ rule. This article contains a particular place of supply rule, with very clear aims: prevent double taxation, non-taxation or distortion of competition. 37 of 28 December 1992 on value added tax). Article 59a of the VAT Directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax) was implemented into the Spanish domestic legislation through Article 70(2) of the Spanish VAT Law (Law No.
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